The Business Secretary will warn today that “complacency” could jeopardise
prospects for growth, after George Osborne declared that his economic plan
had worked.

The Liberal Democrat Vince Cable will say that an “out of control” housing market could derail the recovery.

Mr Cable urges his colleagues not to “rest on our laurels”. In a speech to the CBI, the Business Secretary will say the economy still has a long way to go before a “meaningful” recovery is under way.

His comments come despite a succession of positive economic developments, including higher growth forecasts, falling unemployment and investment in thousands of jobs. In a speech on Monday, the Chancellor claimed that the economy was “turning a corner”.

Mr Osborne boasted that he had been right to keep to his public spending cuts. But Mr Cable believes significant risks remain.

He is expected to tell the conference in Warwickshire: “We can’t rest on our laurels.

“There are risks, not least the housing market getting out of control. Recovery will not be meaningful until we see strong and sustained business investment.”

Mr Osborne received a fresh boost last night after European Union lawyers ruled that EU plans for a tax on financial transactions would be illegal. A leaked legal opinion includes warnings that the flagship policy is “not compatible” with existing laws.